According to Lao Dong reporters, from the beginning of 2025 until now, Hanoi apartment prices have remained high. Savills Vietnam data shows that in the first quarter of 2025, the average selling price of primary apartments in Hanoi reached 79 million VND/m2. Primary apartment prices have increased by an average of 22% per year over the past 5 years.
Dong Anh recorded the highest price increase, reaching 42% per year, while Tay Ho ranked second with a price growth rate of 40%/year. Notably, Tay Ho is currently leading in average primary apartment prices, reaching 185 million VND/m2.
In the context of rising apartment prices, many investors have begun to shift to the suburbs to seek investment opportunities for land.
Talking to Lao Dong, Ms. Hoang Lan Anh - a long-time investor in Hanoi - said that over the past 6 months, the real estate market has fluctuated strongly, especially in the apartment segment.
According to Ms. Lan Anh, apartment prices are currently too high, making the profitability of investing in high-rise housing no longer attractive. Therefore, her group started to buy land in suburban areas, where there is still room for price increases.
However, after surveying in Van Canh and Lai Yen communes (Hoai Duc, Hanoi), Ms. Lan Anh was surprised that land prices here were also at a high level. If you could have bought two plots of land with 5 billion VND before, now it is only enough to buy one plot. When land prices increase sharply, this group of investors becomes more cautious in deciding to spend money, prioritizing careful research on the legality of the land and carefully evaluating the investment location.
Although land prices have increased, according to many real estate brokers in Hanoi, the volume of land transactions is currently on the decline.
Mr. Phan Trong Loan - a real estate broker in Hoai Duc - said that land prices in Lai Yen commune currently fluctuate around 100 million VND/m2 depending on the location. If last year there were nearly 20 land transactions recorded each month, recently there have been only a few transactions per month. According to Mr. Loan, the current high land prices in many areas have caused investors to temporarily stand outside the market waiting for further developments.
Ms. Pham Thi Mien - Deputy Director of the Vietnam Institute for Real Estate Market Research and Evaluation - said that central real estate prices in large cities such as Hanoi and Ho Chi Minh City are increasingly setting record levels, making investment more difficult. High capital costs, reduced profit margins or not guaranteed due to many projects in the center facing legal problems, prolonging implementation time. This forces investors with limited financial resources to move to the suburbs to seek opportunities.
According to Ms. Mien, individual investors are currently mainly focusing on types such as land plots, commercial townhouses or new urban area projects with reasonable investment value. Instead of short-term surfing, many people choose the strategy of accumulating land funds in the suburbs, in advance of future infrastructure development.
It is forecasted that in the coming time, the trend of investment shift to the non-central area will become increasingly clear. However, investors need to carefully study planning, land use rights and legal procedures before deciding to invest. In addition, not every area has enough attraction to ensure the ability to consume real estate products, while some places still have limited infrastructure and public utilities, affecting the ability to attract residents and investors.
